Distribution Agreement for needle-free insulin delivery system in Canada

The Medical House PLC (“TMH”), the medical equipment and devices company, announces that it has signed a distribution agreement with Tri-Q Health for the distribution in Canada of its new proprietary needle-free system for the delivery of insulin. According to the W.H.O estimates for the year 2000, there were over 2 million people with diabetes in Canada.

TMH announced on 8 May 2003 that its new proprietary needle-free drug delivery system had been awarded the CE Mark. The agreement with Tri-Q Health will become effective following the regulatory process in Canada to approve the use of the CE-marked device for the delivery of insulin. This process is expected to be completed by the end of Q1 2004.

The agreement with Tri-Q Health will run for an initial period of 7 years on an exclusive basis. The company anticipates revenues over the period of the agreement in excess of £3.5 million.

Tri-Q Health is a privately-owned company, with representation throughout Canada. Tri-Q Health is focused on the distribution of pharmaceutical and medical equipment, including diabetes-related products.

Ian Townsend, Chief Executive, commented:

“Since the start of the year we now have six distribution agreements in place worldwide that will generate solid cash flow over the coming years and negotiations are ongoing with potential distributors in other countries where we have yet to formalise distribution agreements.”
- Ends -

Note: The six distribution agreements currently in place cover: Australia; the Southern Africa Development Communities (including South Africa, Angola, Namibia, Botswana, Zambia, Swaziland, Zimbabwe, Malawi, Mozambique and Lesotho); Israel; the Benelux countries (Belgium, Holland and Luxembourg), Turkey; and Canada.

- Ends -

Contacts:
Ian Townsend, Chief Executive
tel: 0114 261 9011
The Medical House PLC
www.themedicalhouse.com

John Bick, Holborn
tel: 020 7929 5599